Commitments, Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2013

Commitments, Contingent Liabilities and Guarantees

Summary of Significant Commitments

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:
		September 30,	December 31,
($ in millions)		2013	2012
Commitments to extend credit	$	59,411	53,403
Forward contracts to sell mortgage loans		4,068	5,322
Letters of credit		4,019	4,281
Noncancelable lease obligations		742	769
Capital commitments for private equity investments		96	121
Purchase obligations		89	87
Capital expenditures		38	29
Capital lease obligations		19	24

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table:
		September 30,	December 31,
($ in millions)		2013	2012
Pass	$	58,752	52,812
Special mention		304	370
Substandard		350	221
Doubtful		5	-
Total	$	59,411	53,403

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of:
		September 30,
($ in millions)		2013
Less than 1 year(a)	$	1,795
1 - 5 years(a)		2,172
Over 5 years		52
Total	$	4,019

• Includes $67and $6issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively.

Credit Risk associated with Letters of Credit

Risk ratings under this risk rating system are summarized in the following table:
		September 30,	December 31,
($ in millions)		2013	2012
Pass	$	3,515	3,902
Special mention		137	129
Substandard		343	223
Doubtful		24	27
Total	$	4,019	4,281

Activity in Reserve for Representation and Warranty Provisions

The following table summarizes activity in the reserve for representation and warranty provisions:
		For the three months ended September 30,		For the nine months ended September 30,
($ in millions)		2013	2012	2013	2012
Balance, beginning of period	$	117	57	110	55
(Recovery of) provision for representation and warranty expense		(3)	37	34	66
Losses charged against the reserve		(11)	(13)	(41)	(40)
Balance, end of period	$	103	81	103	81

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2013:
	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	294	$	48	124	$	19
New demands	1,409		189	223		2
Loan paydowns/payoffs	(11)		(2)	(6)		(1)
Resolved demands	(1,397)		(190)	(311)		(16)
Balance, end of period	295	$	45	30	$	4

The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2012:
	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	328	$	47	109	$	19
New demands	2,116		274	173		6
Loan paydowns/payoffs	(34)		(5)	(1)		-
Resolved demands	(2,092)		(261)	(157)		(6)
Balance, end of period	318	$	55	124	$	19